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1. Company Snapshot

1.a. Company Description

Liberty Energy Inc.provides hydraulic fracturing and wireline services, and related goods to onshore oil and natural gas exploration and production companies in North America.It also offers hydraulic fracturing pressure pumping services, including pressure pumping and pumpdown perforating services, as well wireline services, proppant delivery solutions, data analytics, related goods and technologies.


In addition, the company owns operates two sand mines in the Permian Basin.As of December 31, 2021, it had a total of approximately 30 active frac fleets.The company offers its services primarily in the Permian Basin, the Eagle Ford Shale, the Denver-Julesburg Basin, the Williston Basin, and the Powder River Basin.


The company was formerly known as Liberty Oilfield Services Inc.and changed its name to Liberty Energy Inc.in April 2022.


Liberty Energy Inc.was founded in 2011 and is headquartered in Denver, Colorado.

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1.b. Last Insights on LBRT

Liberty Energy Inc.'s recent performance was driven by strong Q4 earnings and revenue beats, with profits of $0.05 per share exceeding estimates. The company's revenue hit $1B, and power deals expanded its energy infrastructure platform. Strategic expansion into power and resilient operations have positioned the company favorably. Analysts have given the stock an average rating of "Hold" with six assigning a buy recommendation (MarketBeat Ratings). The company's Q4 earnings call highlighted its growth prospects. Institutional investors, such as Callodine Capital Management LP, have increased their stakes in the company.

1.c. Company Highlights

2. Liberty's Strong Q4 Results Driven by Operational Excellence and Growing Power Demand

Liberty reported revenue of $1 billion for the fourth quarter of 2025, representing a 10% sequential increase driven by activity levels that exceeded the industry. For the full year, revenue was $4 billion, compared to $4.3 billion in 2024. Adjusted EBITDA was $634 million for the full year, down from $922 million in the prior year. The company's adjusted net income per fully diluted share was $0.15, while the actual EPS came out at $0.05, beating estimates of -$0.16. Analysts estimate next year's revenue growth at 10.2%.

Publication Date: Feb -10

📋 Highlights
  • 2025 Revenue & EBITDA:: $4 billion revenue, $634 million adjusted EBITDA, driven by resilient CROCI of 13% despite market volatility.
  • Capital Return:: $77 million returned via dividends and share buybacks in early 2026, reflecting disciplined capital allocation.
  • Operational Efficiency:: AI-driven asset optimization reduced maintenance costs by 14% per unit of work, enhancing margins.
  • Power Agreements:: 1 GW deal with Vantage Data Centers and 330 MW Texas project, expanding LPI’s 3 GW 2029 target pipeline.
  • 2026 Financial Outlook:: $1 billion CapEx split equally between project finance and free cash flow/debt, with EBITDA expected to decline in 2026 but recover in 2027.

Operational Highlights

Liberty's operational performance was strong, with the team delivering superior service and capturing a larger part of customers' spend through vertical integration. The company also advanced its industry-leading AI-enhanced digital solutions, optimizing performance and providing customers with enhanced visibility into operations. The LPI execution platform is being built for earnings growth with strategic partnerships and targeted investments, capitalizing on the revolutionary transformation of power supply.

Power Demand and Growth Opportunities

The company's Power-as-a-Service offering is underpinned by the Forte generation platform and Tempo power quality management system, delivering resilience, economic efficiency, and operational flexibility. Liberty has seen strong commercial traction, with agreements with Vantage Data Centers to develop and deliver at least 1 gigawatt of utility-scale high-efficiency power solutions. The opportunity set for Liberty Power's 3-gigawatt goal has expanded, driven by the increasing trend of co-located behind-the-meter power as the best solution for long-term power provision at data center sites.

Financial Performance and Outlook

Liberty's financial performance was impacted by the completions business, with EBITDA expected to be down in 2026. However, the company expects significant growth in 2027. The company's net debt increased by $49 million from the prior year, and total liquidity at the end of the year was $281 million. The expected tax expense rate in 2026 is approximately 25% of pretax income, and the company does not expect to pay material cash taxes in the year.

Valuation

Liberty's current valuation metrics include a P/E Ratio of 27.57, P/B Ratio of 1.96, and EV/EBITDA of 6.69. The company's ROE is 7.25%, and ROIC is 2.08%. The Net Debt / EBITDA ratio is 1.15. These metrics suggest that the market is pricing in a certain level of growth and profitability for the company.

3. NewsRoom

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LBRT Stock Up 28% in a Month: Should Investors Hold or Move On?

Feb -17

Source: zacks.com

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Liberty Energy Inc. $LBRT Shares Sold by AlphaQuest LLC

Feb -16

Source: defenseworld.net

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Tamboran advances Beetaloo pilot as funding and infrastructure build gather pace in Q2

Feb -12

Source: proactiveinvestors.com

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Liberty Energy Inc. (NYSE:LBRT) Given Average Rating of “Hold” by Analysts

Feb -09

Source: defenseworld.net

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Liberty Energy Inc. Announces Pricing of Upsized $700 Million Convertible Senior Notes Offering

Feb -04

Source: businesswire.com

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Liberty Energy Inc. Announces Proposed $500 Million Convertible Senior Notes Offering

Feb -02

Source: businesswire.com

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Liberty Energy's Q4 Earnings and Revenues Beat Estimates

Jan -30

Source: zacks.com

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Liberty Energy (NYSE:LBRT) Reaches New 12-Month High Following Strong Earnings

Jan -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.23%)

6. Segments

Hydraulic Fracturing and Related Goods and Services

Expected Growth: 8.23%

Liberty Energy Inc.'s 8.23% growth in Hydraulic Fracturing and Related Goods and Services is driven by increasing demand for oil and gas, advancements in fracking technology, and rising exploration activities. Additionally, the company's strategic acquisitions, expanded service offerings, and strong operational efficiency also contribute to its growth momentum.

7. Detailed Products

Renewable Energy Solutions

Liberty Energy Inc. offers customized renewable energy solutions, including solar, wind, and hydroelectric power, to help businesses and individuals reduce their carbon footprint and energy costs.

Energy Efficiency Services

Liberty Energy Inc. provides energy efficiency services, including energy audits, retrofits, and energy management systems, to help customers optimize their energy usage and reduce waste.

Energy Storage Systems

Liberty Energy Inc. designs and installs energy storage systems, including batteries and other innovative solutions, to help customers optimize their energy usage and reduce peak demand charges.

Electric Vehicle Charging Infrastructure

Liberty Energy Inc. provides electric vehicle charging infrastructure solutions, including Level 2 and DC Fast Charging stations, to support the growing demand for EVs.

Energy Management Software

Liberty Energy Inc. offers energy management software solutions to help customers monitor, analyze, and optimize their energy usage in real-time.

Sustainability Consulting

Liberty Energy Inc. provides sustainability consulting services to help customers develop and implement sustainable energy strategies and reduce their environmental impact.

8. Liberty Energy Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Liberty Energy Inc. faces moderate threat from substitutes due to the availability of alternative energy sources such as solar and wind power.

Bargaining Power Of Customers

Liberty Energy Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Liberty Energy Inc. relies on a few key suppliers for its operations, giving them some bargaining power, but the company's size and scale also give it negotiating leverage.

Threat Of New Entrants

The energy industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to challenge Liberty Energy Inc.'s market position.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share, which increases the intensity of rivalry and puts pressure on Liberty Energy Inc. to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 18.04%
Debt Cost 9.61%
Equity Weight 81.96%
Equity Cost 13.15%
WACC 12.51%
Leverage 22.01%

11. Quality Control: Liberty Energy Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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USA Compression Partners

A-Score: 6.8/10

Value: 6.0

Growth: 5.2

Quality: 5.9

Yield: 10.0

Momentum: 6.0

Volatility: 7.7

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Archrock

A-Score: 5.6/10

Value: 3.9

Growth: 4.9

Quality: 5.9

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

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NOV

A-Score: 5.4/10

Value: 7.7

Growth: 5.4

Quality: 5.0

Yield: 4.0

Momentum: 5.0

Volatility: 5.0

1-Year Total Return ->

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Liberty Energy

A-Score: 5.0/10

Value: 7.8

Growth: 8.1

Quality: 4.6

Yield: 3.0

Momentum: 4.0

Volatility: 2.3

1-Year Total Return ->

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Weatherford

A-Score: 4.7/10

Value: 5.9

Growth: 7.2

Quality: 6.1

Yield: 1.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Cactus

A-Score: 4.4/10

Value: 5.5

Growth: 4.4

Quality: 8.1

Yield: 2.0

Momentum: 1.5

Volatility: 5.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.12$

Current Price

27.12$

Potential

-0.00%

Expected Cash-Flows